Value Investing Podcast

We continue to talk about the investing rules by Peter Lynch and this episode covers the following 8 rules. Never invest in a company without understanding its finances. The biggest losses in stocks come from companies with poor balance sheets. Always look at the balance sheet to see if a company is solvent before you risk your money on it. Avoid hot stocks in hot industries. Great companies in cold, no growth industries are consistent big winners. With small companies, your better off to wait until they turn a profit before you invest. If you're thinking about investing in a troubled industry, buy the companies with staying power. Also, wait for the industry to show signs of revival. Buggy whips and radio tubes were troubled industries that never came back. If you invest $1,000 in a stock, all you can lose is $1,000, but you stand to gain $10,000 or even $50,000 over time if you're patient. The average person can concentrate on a few good companies, while the fund manager is forced to diversify. B